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Loan scheme confirmed for Scotland's remote farmers

Hill farmers and crofters will be offered the £55m nationally-funded loan

Scottish hill farmers and crofters will be offered a nationally-funded loan for Less Favoured Area Support Scheme 2017.

The loan scheme will inject up to £55 million into some of Scotland's most remote and rural communities in the hope of safeguarding jobs and local agricultural businesses.

Eligible hill farmers and crofters will be offered a loan of up to 90% of their LFASS entitlement, with payments beginning in April.

Tere are specific EU rules around advance payments which at this stage of processing 2017 claims would mean the Scottish government unable to make advance payments.

Therefore, is has made the offer of loans from domestic funding which is not constrained by EU rules.

Announcing the scheme at the annual NFU Scotland AGM, Rural Economy Secretary Fergus Ewing said LFASS payments are important to farmers in marginalised areas.

“While we are making good progress in our handling of LFASS2017 scheme payments, and are on track to commence payments earlier than we have done in previous years, I want to offer as much certainty as I can right now,” Mr Ewing said.

“While this loan scheme will inject up to £55 million into some of our most vulnerable and remote areas, providing much needed financial security in the months ahead, I want to reassure farmers and crofters that this loan offer does not take away funding from any public services. It is theirs and they should have it.”